The S&P 500 slipped 0.33% as renewed U.S.-Iran military strikes pushed crude oil back above $90 a barrel and dented risk appetite across equities. The Dow and Nasdaq also closed lower, even as crypto-linked stocks such as Circle Internet Group gained and the S&P 500 still finished August with a solid monthly gain.
Fresh military strikes between the United States and Iran sent crude oil back above $90 a barrel on Aug. 31, and stocks retreated as the escalation revived inflation concerns. The Dow Jones Industrial Average fell 0.7% to 53,186. The S&P 500 lost 0.33% to 7,686.14. The Nasdaq Composite edged down 0.12% to 26,371.
Oil surge revives inflation fears
The renewed U.S.-Iran tensions are a familiar pattern for investors: military escalation, then a jump in energy prices, then pressure on equities. Gold futures fell 0.64% to $4,466 at the U.S. market close. The 10-year Treasury yield rose 0.04% to 4.76%. Most sectors fell, but energy and consumer defensive stocks were among the few gainers, and basic materials and industrials saw the biggest losses.
Bitcoin-linked stocks buck the selloff
Strategy attracted attention after announcing it had resumed its Bitcoin purchases, and other crypto stocks, including Circle Internet Group, gained on broader digital asset strength.
Shares in HDFC Bank, one of India’s largest banks, faced volatility after news that its chief executive officer would hand over the reins.
Fed rate-hike bets cloud the September outlook
Even so, the S&P 500 finished August with a 2.6% gain, as strong earnings, particularly from big tech, helped lift major U.S. indexes. Investors are braced for possible declines in September, as expectations grow that the Federal Reserve will announce an interest rate hike in a month that has historically seen stocks underperform.
Source: Fool
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